Question 1

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Accepted Answer

A)  (total unemployed + marginally attached workers) /adult population
B)  (total unemployed + marginally attached workers + part-time employed for economic reasons) /adult population
C)  (total unemployed + marginally attached workers) /(labor force + marginally attached workers) 
D)  (total unemployed + marginally attached workers + part time employed for economic reasons) /(labor force + marginally attached workers) E) B) and D)
F) All of the above

Question 2

Structural unemployment is often thought to explain relatively short spells of unemployment.

Accepted Answer

A) True 
 B)False

Question 3

The labor-force participation rate is computed as

Accepted Answer

A)  (EmployedAdult Population) 100.
B)  (EmployedLabor Force) 100.
C)  (Labor ForceAdult Population) 100.
D)  (Adult PopulationLabor Force) 100.E) A) and B)
F) A) and C)

Question 4

More than 3 percent of U.S. workers leave their jobs in a typical month.

Accepted Answer

A) True 
 B)False

Question 5

Andre owns his own business. Oscar is an unpaid worker in his family's business. Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A)  only Andre
B)  only Oscar
C)  both Andre and Oscar
D)  neither Andre nor OscarE) All of the above
F) C) and D)

Question 6

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non-institutionalized population was 7.568 million, the labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

Accepted Answer

A)  64.6% and 8.2%.
B)  64.6% and 5.3%.
C)  59.3% and 8.2%.
D)  59.3% and 5.3%.E) A) and B)
F) A) and C)

Question 7

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

Accepted Answer

A) True 
 B)False

Question 8

Angelica is an unpaid homemaker who works as a volunteer at the local Red Cross and is currently not looking for a paid job. The Bureau of Labor Statistics counts Angelica as

Accepted Answer

A)  unemployed and in the labor force.
B)  unemployed, but not in the labor force.
C)  in the labor force, but not unemployed.
D)  neither in the labor force nor unemployed.E) C) and D)
F) None of the above

Question 9

Every adult who was not employed during the previous 4 weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Accepted Answer

A) True 
 B)False

Question 10

Spells of unemployment end about

Accepted Answer

A)  1/5 of the time with the person leaving the labor force.
B)  1/4 of the time with the person leaving the labor force.
C)  1/3 of the time with the person leaving the labor force.
D)  1/2 of the time with the person leaving the labor force.E) All of the above
F) C) and D)

Question 11

Table 15-1
Labor Data for Aridia
   Year 201020112012 Adult population 200030003200 Number of emplayed 140013001600 Number of unemplayed 200600200\begin{array} { | l | c | c | c | } \hline 	ext { Year } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 1 1 } & \mathbf { 2 0 1 2 } \\hline 	ext { Adult population } & 2000 & 3000 & 3200 \\hline 	ext { Number of emplayed } & 1400 & 1300 & 1600 \\hline 	ext { Number of unemplayed } & 200 & 600 & 200 \\hline\end{array} Year  Adult population  Number of emplayed  Number of unemplayed ​201020001400200​201130001300600​201232001600200​​ 
-Refer to Table 15-1. The number of adults not in the labor force of Aridia

Accepted Answer

A)  increased from 2010 to 2011 and increased from 2011 to 2012.
B)  increased from 2010 to 2011 and decreased from 2011 to 2012.
C)  decreased from 2010 to 2011 and increased from 2011 to 2012.
D)  decreased from 2010 to 2011 and decreased from 2011 to 2012. E) A) and D)
F) C) and D)

Question 12

Brian is the owner of a firm that produces bottled water in Washington state. There are many other such firms in the area. Brian decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Accepted Answer

A)  The higher the wage, the less often his workers will choose to leave his firm.
B)  The higher the wage, the lower will be the cost of obtaining needed supplies.
C)  The higher the wage, the more he can charge for his water.
D)  The higher the wage, the more he will have to monitor his workers for shirking.E) A) and D)
F) A) and C)

Question 13

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Accepted Answer

A) True 
 B)False

Question 14

Table 15-1
Labor Data for Aridia
   Year 201020112012 Adult population 200030003200 Number of emplayed 140013001600 Number of unemplayed 200600200\begin{array} { | l | c | c | c | } \hline 	ext { Year } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 1 1 } & \mathbf { 2 0 1 2 } \\hline 	ext { Adult population } & 2000 & 3000 & 3200 \\hline 	ext { Number of emplayed } & 1400 & 1300 & 1600 \\hline 	ext { Number of unemplayed } & 200 & 600 & 200 \\hline\end{array} Year  Adult population  Number of emplayed  Number of unemplayed ​201020001400200​201130001300600​201232001600200​​ 
-Refer to Table 15-1. The unemployment rate of Aridia in 2011 was

Accepted Answer

A)  20%.
B)  31.6%.
C)  46.2%.
D)  63.3%. E) All of the above
F) C) and D)

Question 15

The reported unemployment rate should be viewed as

Accepted Answer

A)  a useful but imperfect measure of joblessness.
B)  clearly smaller than the true unemployment rate.
C)  clearly larger than the true unemployment rate.
D)  being very close to the true unemployment rate.E) None of the above
F) A) and C)

Question 16

If the wage is kept above the equilibrium wage for any reason, the result is structural unemployment.

Accepted Answer

A) True 
 B)False

Question 17

Within the U.S., teenagers have similar rates of unemployment as older workers.

Accepted Answer

A) True 
 B)False

Question 18

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Accepted Answer

A) True 
 B)False

Question 19

Efficiency-wage theory suggests that paying

Accepted Answer

A)  low wages might be profitable because they raise the efficiency of a firm's workers.
B)  low wages might be profitable because they lower the efficiency of a firm's workers.
C)  high wages might be profitable because they raise the efficiency of a firm's workers.
D)  high wages might be profitable because they lower the efficiency of a firm's workers.E) None of the above
F) C) and D)

Question 20

Minimum wages create unemployment in markets where they create a

Accepted Answer

A)  shortage of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S.
B)  shortage of labor. Minimum wage laws are the predominant reason for unemployment in the U.S.
C)  surplus of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S.
D)  surplus of labor. Minimum wage laws are the predominant reason for unemployment in the U.S.E) A) and B)
F) B) and C)

Exam 15: Unemployment

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

Correct Answer
verified

Structural unemployment is often thought to explain relatively short spells of unemployment.

Correct Answer
verified

Angelica is an unpaid homemaker who works as a volunteer at the local Red Cross and is currently not looking for a paid job. The Bureau of Labor Statistics counts Angelica as

Correct Answer
verified

If the wage is kept above the equilibrium wage for any reason, the result is structural unemployment.

Correct Answer
verified

Brian is the owner of a firm that produces bottled water in Washington state. There are many other such firms in the area. Brian decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Correct Answer
verified

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Correct Answer
verified

Correct Answer
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Every adult who was not employed during the previous 4 weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Correct Answer
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Correct Answer
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Correct Answer
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Andre owns his own business. Oscar is an unpaid worker in his family's business. Who is included in the Bureau of Labor Statistics' "employed" category?

Correct Answer
verified

The labor-force participation rate is computed as

Correct Answer
verified

Efficiency-wage theory suggests that paying

Correct Answer
verified

Spells of unemployment end about

Correct Answer
verified

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Correct Answer
verified

Minimum wages create unemployment in markets where they create a

Correct Answer
verified

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Correct Answer
verified

Within the U.S., teenagers have similar rates of unemployment as older workers.

Correct Answer
verified

The reported unemployment rate should be viewed as

Correct Answer
verified

More than 3 percent of U.S. workers leave their jobs in a typical month.

Correct Answer
verified

Exam 15: Unemployment

Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one.

Correct AnswerverifiedShow Answer

Structural unemployment is often thought to explain relatively short spells of unemployment.

Correct AnswerverifiedShow Answer

Angelica is an unpaid homemaker who works as a volunteer at the local Red Cross and is currently not looking for a paid job. The Bureau of Labor Statistics counts Angelica as

Correct AnswerverifiedShow Answer

If the wage is kept above the equilibrium wage for any reason, the result is structural unemployment.

Correct AnswerverifiedShow Answer

Brian is the owner of a firm that produces bottled water in Washington state. There are many other such firms in the area. Brian decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics' U-1 measure of joblessness is larger than its U-6 measure of joblessness.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Every adult who was not employed during the previous 4 weeks is included in the Bureau of Labor Statistics' "unemployed" category.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Andre owns his own business. Oscar is an unpaid worker in his family's business. Who is included in the Bureau of Labor Statistics' "employed" category?

Correct AnswerverifiedShow Answer

The labor-force participation rate is computed as

Correct AnswerverifiedShow Answer

Efficiency-wage theory suggests that paying

Correct AnswerverifiedShow Answer

Spells of unemployment end about

Correct AnswerverifiedShow Answer

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Correct AnswerverifiedShow Answer

Minimum wages create unemployment in markets where they create a

Correct AnswerverifiedShow Answer

Structural unemployment results when the number of jobs is insufficient for the number of workers.

Correct AnswerverifiedShow Answer

Within the U.S., teenagers have similar rates of unemployment as older workers.

Correct AnswerverifiedShow Answer

The reported unemployment rate should be viewed as

Correct AnswerverifiedShow Answer

More than 3 percent of U.S. workers leave their jobs in a typical month.

Correct AnswerverifiedShow Answer

Correct Answer
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